British insurance giant Prudential is reportedly planning to divest its stake in the US insurance arm Jackson National Life.
The insurer is looking to either partially float or sell stake in the Jackson National.
Go deeper with GlobalData
The company, according to media reports, is facing pressure from an activist hedge fund to turn its focus towards Asia.
It is expected that Prudential will be revealing the final plan on 11 March 2020 when it published its financial results for the year 2019.
The decision to split the US business comes weeks after investment firm Third Point called for a radical overhaul.
Last month, the investment firm proposed that Prudential should separate its US and Asia businesses in order to double the value of the business by 2023.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThird Point is the second-largest shareholder of the Prudential group.
It believes that the combination of the US and Asian business causes its shares to be undervalued.
Based in Michigan, Jackson National is valued between $6bn and $10bn and has four million customers in the US.
Third Point founder and CEO Dan Loeb said: “If PruAsia and Jackson were separated, resulting in a greater focus on reinvesting capital in each unit and streamlining central costs at the group level, our analysis indicates that the interests represented by Prudential Plc shares can double within three years.”
He added that there was “no discernible benefit from the two divisions being operated under the same corporate umbrella”
Loeb has taken nearly 5% stakes for about $2bn (£1.5bn) in Prudential after the insurer demerged from its UK and European investment arm M&G last year.
Founded 172 years ago, Prudential is one of the largest insurers in the UK valued at £31bn ($35.4bn).
